Vladimir Putin's opening address: 

Good afternoon, colleagues,

We have just attended the official ceremony of putting into operation the Vankor oil and gas field - a project that is launching a programme of all-round development of hydrocarbon deposits in the Yamal Peninsula and the north of the Krasnoyarsk Territory.

The Governor will surely reproach us because this meeting concerns only his region's north while its other parts also demand attention. However, we will concentrate only on the north, though larger-scale development will also come up in our discussion.

The north of the Krasnoyarsk Territory possesses 67% of Russian natural gas deposits, 60% of gas condensate and 15% of oil. Geological prospecting will go on, and promises more discoveries.

236 oil and gas fields have been discovered for now, and another 63 are being explored. It all makes mere 20% of oil deposits, 35% of gas and 17% of gas condensate.

Experts assess summary potential yield as exceeding 115 million tonnes by 2020.

It is a new oil and gas basin. The Government has determined to develop it comprehensively for the greatest possible thrift and effect. As we see it, this development concept will consolidate the state's and mining companies' efforts and cut expenditures. If we establish a common transport network, power grid and welfare system, the job will be quicker and more efficient, and will cost much less-which matters most-than when every involved company builds an infrastructure for itself on its own. Several managers have said so today and, I think, everyone sees their point.

The arrangement also allows involving minor and medium-size deposits into operation, making them profitable, and using casing head gas to the greatest possible effect. 73 companies have obtained 230 licenses for now. 176 of those licenses concern mining and 54 geological prospecting. The relevant companies include Gazpromneft, LUKoil, Rosneft, Slavneft, Surgutneftegaz, TNK-BP and, last but not least, Eni.

I think our agenda should include progress made on the project, and its urgent problems. As I have said, the programme envisages priority infrastructural development to open up new deposits. It includes construction and modernisation of highways, pipelines and power plants. It will be expedient to use all opportunities provided by government and private companies' partnership. The Ministries of Economic Development, Finance, Transport and Energy should assess the expediency of road and electricity supply network construction on such principles.

There is another lucrative tool of project funding. I mean revenue-yielding bonds. I ask Transneft representatives to tell how they are organising work with such securities issued for oil pipeline construction in the region, and about their contacts with parastatal banks.

The Vnesheconombank Supervisory Board has determined to finance works on the Urengoi State District Power Plant, which is the principal energy project in regional development.

So the finance problem is being settled, on the whole. Now, it is time to accelerate the commissioning of power-generating capacities, and arrange long-term gas supplies to the Urengoi Power Plant.

The development of new deposits will be impeded by the unfriendly local climate and terrain. Much will be done from scratch. Mining companies will demand support, and it is our duty to promote their investment activity.

As you know, many oilfields enjoy the zero mineral extraction tax rate even now. This privilege will spread to the entire Yamal-Nenets Autonomous Area, as we have arranged. Possibly, it should also concern gas mining.

A critical decision has been made to introduce the zero export duty rate for oil mined in certain Eastern Siberian fields, which include Vankor. All relevant bylaws must be passed urgently to make this norm work.

Reciprocally, we expect business people to contribute actively to implementing the programme of all-round regional development. It envisages, first of all, investment in equipping oil and gas condensate deposits, construction of pipelines and highways, and geological prospecting.

I am sure we have every opportunity to make the new oil and gas basin reach its maximum output in ten years. It will enhance Russia's resource potential spectacularly, improve its position in the world markets, create several dozen thousands of new jobs, and increase local budget revenues.

Let us be as efficient as possible today.